As long as personal information can be stored online, criminals will attempt to steal the identities of others and open fake accounts. That is why it’s important to take the necessary steps to protect yourself from consumer fraud.
To keep yourself safe, you need to be aware of the possibility of credit card fraud and pay attention to any suspicious activity that may indicate criminals are trying to use your personal data illegally.
What to Do If You Suspect Consumer Fraud
If you think you’ve been a victim of consumer fraud, you can take some steps to recover your identity and keep criminals from further damaging your credit.
One of the first things to do is safeguard your credit to keep criminals from applying for credit cards or loans in your name. You can request fraud alerts for your accounts and credit cards. The alert requires lenders to verify your identity before issuing any credit in your name or processing a loan application.
You can also request a credit freeze if you think someone is trying to use your identity. The freeze places restrictions on your bank accounts or credit cards until you remove the freeze.
Security Freeze vs Fraud Alert
Fraud alerts and security freezes are two tools you can use to stop consumer fraud. Here are some of the differences between the two:
Fraud alerts will either expire after one year to seven years depending on the type of alerts you want but they can be renewed indefinitely. Fraud alerts permit you to apply for credit, but the approval process may be delayed until the lender verifies your identity. Fraud alerts make it convenient for you to apply for credit or loans in the immediate future.
Credit freezes, on the other hand, prevent unauthorized individuals from gaining access to your credit information. However, the freeze will also block credit checks from lenders. This means you have to remove the freeze before you can apply for any new credit cards or loans. A credit freeze can be a useful consumer fraud protection tool if you don’t plan on applying for any loans in the next few months.
How Does Consumer Fraud Happen?
Identify theft and credit fraud comes in several forms. Fraud is classified by the personal credentials that are involved and how personal information is stolen.
Data criminals often target include:
· Driver’s license numbers
· Social security numbers
· Credit card information
· Bank account numbers
· Social media or bank account passwords.
There are also several methods identity thieves use to gather information. These include:
· Phishing scams. Criminals will attempt to get in touch with you via email, social media messaging, or text. They will often pretend to be trustworthy authority figures so that you will feel comfortable submitting your personal data. If you aren’t sure about a message you’ve received, don’t click on any links in the message and report it or delete it.
· Data breaches. Some criminals will hack into a commercial database to obtain people’s personal info. They will then use the stolen credentials for their own personal gain or sell the information to other identity thieves. If your bank or lender notifies you of a data breach, it may be a good idea to consider a credit freeze. You could also use a credit monitoring service to alert you of any suspicious activity in your account and any other activity connected to your bank account or credit card.
If you believe you are a victim of identity theft or credit card fraud, contact an attorney immediately. You can check out here several current law case investigations into consumer fraud to see how you can receive a fair settlement if you are on the receiving end. An attorney with experience in this area can also give you critical tips for how to protect yourself in the future.
About the author:
Wilma Wiliams is a law school graduate and a part-time freelance blogger, focused on various legal topics such as personal injury, and bankruptcy. She’s passionate about educating the public on fighting for their rights, which is why she’s currently collaborating with Ask LLP: Lawyers for Justice, whilst actively sharing a part of her experience as a former lawyer.